Moldova and Malta will amend the intergovernmental convention for the avoidance of double taxation and the prevention of tax evasion on income.
The government approved the corresponding resolution on the beginning of negotiations on the draft protocol on changing the convention at a meeting on Wednesday. The convention was signed on April 10, 2014. The provisions of the convention are aimed at creating tax systems that would coordinate the actions of Moldova and Malta aimed at avoiding double taxation, distributing tax rights between countries and eliminating tax discrimination in any form, which will provide favorable conditions for the implementation of activities , economic growth and strengthening of economic relations. The amendments to the convention are being introduced at the initiative of the Maltese side, in order to harmonize the provisions of the convention with the minimum standards 6 and 14 BEPS, which relate to the erosion of the tax base and the shift of the profit center. BEPS (Base Erosion and Profit Shifting) is the Organization for Economic Co-operation and Development's action plan, which is designed to ensure that businesses do not evade taxes by removing profits and eroding the tax base. It allows tax authorities of different countries to exchange tax information. The implementation of the BEPS minimum standard enables countries to effectively counter aggressive tax planning, erosion of the tax base and the removal of profits from taxation. // 18.11.2020 — InfoMarket.
